As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the specialty equipment distributors industry, including SiteOne (NYSE:SITE) and its peers.
Historically, specialty equipment distributors have boasted deep selection and expertise in sometimes narrow areas like single-use packaging or unique lighting equipment. Additionally, the industry has evolved to include more automated industrial equipment and machinery over the last decade, driving efficiencies and enabling valuable data collection. Specialty equipment distributors whose offerings keep up with these trends can take share in a still-fragmented market, but like the broader industrials sector, this space is at the whim of economic cycles that impact the capital spending and manufacturing propelling industry volumes.
The 11 specialty equipment distributors stocks we track reported a mixed Q1; on average, revenues were in line with analyst consensus estimates. Stocks--especially those trading at higher multiples--had a strong end of 2023, but 2024 has seen periods of volatility. Mixed signals about inflation have led to uncertainty around rate cuts, and while some of the specialty equipment distributors stocks have fared somewhat better than others, they collectively declined, with share prices falling 2.9% on average since the previous earnings results.
SiteOne (NYSE:SITE) Known for distributing John Deere tractors and LESCO turf care products, SiteOne Landscape Supply (NYSE:SITE) provides landscaping products and services to professionals, including irrigation, lighting, and nursery supplies.
SiteOne reported revenues of $904.8 million, up 8% year on year, exceeding analysts' expectations by 4.6%. Overall, it was a very strong quarter for the company with an impressive beat of analysts' organic revenue estimates.
“During the first quarter of 2024 we experienced continued significant commodity pricing deflation which dampened our near-term results. Against this headwind we were pleased to achieve positive Organic Daily Sales growth, good Net sales growth, and improved operating cash flow for the quarter,” said Doug Black, SiteOne Chairman and CEO.
The stock is down 12.6% since reporting and currently trades at $137.12.
Is now the time to buy SiteOne? Find out by reading the original article on StockStory, it's free. Best Q1: Hudson Technologies (NASDAQ:HDSN)Founded in 1991, Hudson Technologies (NASDAQ:HDSN) specializes in refrigerant services and solutions, providing refrigerant sales, reclamation, and recycling.
Hudson Technologies reported revenues of $65.25 million, down 15.5% year on year, outperforming analysts' expectations by 7.5%. It was an exceptional quarter for the company with a solid beat of analysts' earnings estimates.
Hudson Technologies achieved the biggest analyst estimates beat among its peers. Although it had a great quarter compared its peers, the market seems unhappy with the results as the stock is down 8.9% since reporting. It currently trades at $8.91.
Weakest Q1: Titan Machinery (NASDAQ:TITN)Founded in 1980, Titan Machinery (NASDAQ:TITN) is a distributor of agricultural and construction equipment across the United States and Europe.
Titan Machinery reported revenues of $628.7 million, up 10.4% year on year, falling short of analysts' expectations by 5%. It was a weak quarter for the company with a miss of analysts' earnings estimates.
As expected, the stock is down 26% since the results and currently trades at $17.13.
H&E Equipment Services (NASDAQ:HEES)Founded after recognizing a growth trend along the Mississippi River and opportunities developing in the earthmoving and construction equipment business, H&E (NASDAQ:HEES) offers machinery for companies to purchase or rent.
H&E Equipment Services reported revenues of $371.4 million, up 15.2% year on year, surpassing analysts' expectations by 5.3%. Taking a step back, it was a mixed quarter for the company.
The stock is down 11.6% since reporting and currently trades at $52.34.
United Rentals (NYSE:URI)Headquartered in Stamford, CT, United Rentals (NYSE:URI) provides equipment rental and related services to various industries including construction, industrial, and infrastructure.
United Rentals reported revenues of $3.49 billion, up 6.1% year on year, in line with analysts' expectations. More broadly, it was a decent quarter for the company with full-year revenue guidance beating analysts' expectations but a miss of analysts' earnings estimates.
United Rentals pulled off the highest full-year guidance raise among its peers. The stock is up 11.2% since reporting and currently trades at $728.60.
This content was originally published on Stock Story
